Wise Bread (Sarah Winfrey)

Is Taking Classes Online Right for You?

Sarah Winfrey — Thu, 03 Nov 2011 09:48:16 +0000

Whether you’re looking to start a degree, finish one, continue your education, get some new certifications, or just expand your horizons, there’s probably an online study program out there that would give you what you want.

While many students find these programs a boon to their education, the truth is that there are both benefits and drawbacks to studying online. As someone with experience teaching college courses online, I know that they work well for some students and situations and don’t work well at all for others. If you’re considering taking the next steps in your education online, think about these factors before you jump in. (See also: How to Succeed as an Online Student)

The Benefits of Online Classes

Though some of the benefits of taking online classes are obvious, others may not be as clear. Keep in mind that all of these will not pertain to every situation, but they should help you see how studying over the web could benefit you.

Take Classes You Wouldn’t Otherwise Have Access To

Are your interests obscure, or would you like to get a degree in something that’s only offered in a few places around the world? If you choose an online study option, you won’t have to relocate to get the knowledge and certifications that you want. Since moving around isn’t an option for some people and isn’t desirable for others, online classes can mean the difference between getting a university education and not having that opportunity.

Get the Education You’ve Always Wanted

Whether you started a degree but couldn’t finish it or you never got going, online classes offer you the chance to get your degree right where you are. Since all you’ll need is a reliable computer and an Internet connection, you won’t have to move around or spend too much money to get up and running. In addition, there are all sorts of online study options out there. Some programs, for instance, specialize in helping people finish degrees already started. Others work with those who have not started and try to get them through as quickly as possible.

Work on Your Schedule

One of the best things about studying online is that you don’t have to change your schedule to accommodate a class schedule. Instead, you can work whenever it’s convenient for you. This makes online classes a great option for people with inflexible work schedules, or for those who care for small children and don’t have a good childcare option. In addition, if you know your best thinking hours are at night, you can make sure those are the hours when you do your classwork.

Work at Your Own Pace

Similarly, most online classes allow you to work at your own pace, at least within some broad parameters. Usually, you’ll have to complete your classwork within a semester or a year, but when you turn assignments in and take your tests and quizzes is entirely up to you. Sometimes you’ll have more of a schedule than that, but for the most part you’ll get to choose your own deadlines and due dates. This means you don’t have to worry if something comes up and you can’t get that paper written. It also means you can complete a whole course in a couple of weeks if you’re especially focused.

The Drawbacks of Online Classes

Most people, especially when excited about a new online course of study, don't realize some of the drawbacks until they're signed up and in the middle of a course. While these shouldn't deter everyone from taking online classes, thinking them through should help you decide if this method of study is right for you and your situation.

Course Quality Varies Drastically

While most online courses hit at least a minimum standard (because they’re offered by accredited institutions), the quality of an individual course often depends largely on the professor. If you have a prof who enjoys teaching the subject matter and who is comfortable and experienced working online, you can have a great experience. If, on the other hand, you get someone who is just doing it for the money or because teaching online is supposed to be easier than teaching in the classroom, you could be in for a struggle.

Getting Feedback Can Be Difficult

Though most online professors are supposed to be accessible by email or through the course delivery system, actually getting someone to answer your questions can be difficult and take longer than it might for a class in the traditional format. If you save an assignment until the very end and then don’t understand how to complete it, you might not be able to finish on time. And if you end up with a big question or very confused about an important concept, explaining it online may be nearly impossible.

A Lot Depends on You

Are you a self-motivated person who gets things done without being nagged, or do you tend to forget deadlines on things like bills and other paperwork? If you struggle to complete what you start or to finish things on time, think twice about taking an online course. These are real classes, after all, and your grades will show up on your transcript. Since you may need to submit this for further educational opportunities or to qualify for certain jobs, you’ll want to be sure it shows you at your best.

It Can Get Expensive

For some reason, most people think that online classes are going to cost less than traditional studies. While some schools will offer a small discount for these courses, others actually charge more. After all, someone has to reimburse the professor for rewriting the course for an online format. Besides, schools need all the money they can get these days, and they know that many of the people taking courses online are doing so simply because they don’t have other options. When you’re backed into a corner, you’ll pay more to get out of it.

Finding Online Programs

If you've sifted through the benefits and drawbacks and decided that studying online is right for you, the next thing you need to do is find a program to pursue. When you're looking for an online course of study, you first need to decide what type of course you want. Are you looking for an undergraduate or graduate degree, to finish an incomplete degree, or for a quick certification in something new? The following sites can help you find the programs you want and need.

U.S. News: Online Certificate (Non-Degree) Programs — An overview of how an online certificate could help advance your career as well as links to schools that offer these programs.
CollegeScholarships.com: List of Accredited Universities Offering Online Degrees — This is a long list of colleges across the U.S. that offer both online degrees and degree-completion programs. If you're looking to complete a degree, run a "Find" search in your web browser for the words "degree completion," so you don't have to read all the entries.
OnlineSapiens.com: List of Online Degree Programs by Major — If you know what you want to study, this can be a great way to go straight to those programs without having to sift through everything else. Keep in mind that this list is not comprehensive, but can be a great place to start.

Once you've found some programs you're interested in, try to talk to representatives of the university, as well as to a current student or two. That way, you'll be able to get a better feel for the programs and what they're really like. Then, make your final choice based on all of the information before you.

When you've done that, work hard and reap the benefits of a quality education.

Written by Sarah Winfrey and published on Wise Bread. Read more articles from Wise Bread.

The Debt Ceiling Crisis in Everyday English

Sarah Winfrey — Fri, 29 Jul 2011 22:46:06 +0000

If you’re like most Americans, you’ve heard more than you ever wanted to hear about the debt ceiling crisis. However, hearing is different from understanding, and this is a complex problem that can be difficult to grasp. In this case, it's been even harder to get an accurate explanation about what is going on in language that’s easy to understand. After all, if you’re not an economist or a financier, it’s easy to wonder what the big deal is, anyway.

This week, I had the chance to talk to FOX Business Network reporter Shibani Joshi to see if she could shed some light on this situation and what it means for everyday Americans. She’s been following the story closely for weeks now and was eager to help Wise Bread readers gain a deeper understanding of the debt crisis. (See also: Debt Ceiling Contingency Plans)

What Is the Debt Crisis All About?

Basically, the country is running out of money. As of next Tuesday, August 2nd, the country will no longer be able to borrow more money because it will already have borrowed the maximum amount allowed under current laws. While this may not have a huge effect immediately (since the country does have other sources of income), if not resolved it means that, eventually, the U.S. will not be able to pay its bills. This includes payments owed on the money we’ve already borrowed, as well as veteran’s benefits, Social Security, Medicare and Medicaid, and more.

The government’s problem is similar to the problems that, on a smaller level, caused the recession. Joshi puts it this way, “In the same way we saw Americans living outside of their means by taking out too much credit to buy bigger homes than they could afford and maxing out their credit cards, the U.S. government uses too much credit. This is a magnified example of what happened to millions of Americans in the last decade.”

Is it a Big Deal?

According to Joshi, this is a significant problem. “If the U.S. can’t pay its bills,” she says, “it defaults on its loans and then the entire world will be impacted.” Many countries look to the United States as a financial leader, even during a recession. If we cannot meet our financial responsibilities, this will trickle down to effect people worldwide.

Not raising the debt ceiling will not only effect people around the world financially, but in other ways, too. “We are the most stable nation in the world, and the beacon that the world looks to for security,” Joshi says. If we are proven to be less secure than we appear, that will effect how other countries interact with us and could, eventually, lead to shifts in power around the globe.

Should You Panic?

Not yet. The August 2nd deadline isn’t hard and fast, except that we cannot borrow more money after that date. However, “we still have cash coming into the government, and the government will be able to pay its bills for a short time after August 2nd,” Joshi explains. This means that there is more time and space for lawmakers to agree on a plan than is being touted in many news sources.

In addition, Joshi stresses that “this is sometimes just how the system works. An outcome will be reached. It may not be fun or pretty, but it is how our system works.” She believes that, while lawmakers may hold out until the very last minute, they are not willing to sacrifice the well-being of the country they serve and the rest of the world for a few partisan ideals.

If We Don’t Raise the Debt Ceiling, How Does It Affect Average Americans?

The most significant place that average Americans will see an effect from this crisis is in the value of their investments. The Dow has fallen nearly 500 points during the last week because of the disagreements in Washington on this issue. “That is your money,” Joshi explains, “in retirement funds, college funds, and more.” It’s expected that interest rates will also rise, which means that mortgage, auto loan, and credit card rates will go up, too. The prices of certain commodities, like oil and gold, are also expected to rise. “This could affect your grocery bills and the price at the pump,” Joshi says, which hits every American where it counts.

Beyond that, Americans who rely on money from the government may be put in very difficult situations. If the country cannot provide that depended-upon income, these individuals and families could face serious financial difficulty.

However, it’s also important to note that we don’t know exactly what will happen. We’ve never defaulted on loans before, nor have we had a lowered credit rating. So for the moment, all of this is speculation.

What Can Every American Do in Regards to this Crisis?

1. Don’t panic. Give the government a bit more time to figure things out.

2. Get educated. Before you decide what you think about this issue, learn more about it. The information in this article is a bare-bones explanation. If you want to know more, continue researching until you feel like you understand what’s going on. Then, and only then, decide how you think it should be resolved.

3. Take action. When you know how you’d like to see the situation handled, contact your federal representatives to let them know. You can call, email, write, or Tweet your opinions. Talk to friends and family members, too. After all, many Americans still don’t understand the issue very well.

4. Be open to compromise. Issues as complex as these almost always require conversation and concessions on all sides before they’re resolved. Instead of insisting that your solution is correct, dialogue with others and try to come to a mutual understanding, just like we all want our representatives to do right now.

5. Be open to change. This country needs to operate on a balanced budget that doesn’t involve burgeoning debt, and that means that things cannot continue the way they are. “We have major issues to deal with that go beyond the debt ceiling,” Joshi says, “including a huge spending problem, entitlements that are dysfunctional, and a tax code that could use a house cleaning.” Making things better means change, and it will be easier if we all see it coming.

Shibani Joshi joined FOX Business Network (FBN) in September 2007 as a reporter. To her role, Joshi brings experience in investment banking, strategy and business development. Joshi began her career as an investment banking analyst at Morgan Stanley, where she worked on merger, acquisition, and corporate finance deals in the real estate sector.

Joshi holds an MBA degree from Harvard Business School. She also earned a bachelor’s degree in finance and accounting at the University of Oklahoma. Joshi is a native of Oklahoma City and her parents are originally from Pune, India. FOX Business Network will be airing a special report on the debt crisis on Monday, August 1 at 5AM/ET, where you can hear more of her thoughts and explanations on the current issues.

Written by Sarah Winfrey and published on Wise Bread. Read more articles from Wise Bread.

22 Reasons to Write a Letter

Sarah Winfrey — Wed, 06 Jul 2011 10:24:30 +0000

My daughter loves getting mail. Since she’s only 18 months old, that doesn’t happen very often. But the journey to the mailbox is still something we do religiously every day, because it brings her so much joy.

Truth be told, I still love receiving packages and letters. Not the junk kind, but the real kind, from friends or relatives, just telling me about their days. But it takes effort to correspond this way, especially in today’s world of easy electronic communication. Here are some times when it’s definitely worthwhile to make that effort. (See also: The Importance of Friendly Letters)

1. Get a Deal

Some companies don’t publish their coupons, but will send them to you if you request them in writing. It’s always good to include a Self-Addressed Stamped Envelope (SASE) when you make your request, too, so it’s easier for them.

2. Express Yourself

Read a newspaper article that you didn’t like? Find an editorial that you could have written better fast asleep? Send the newspaper a letter to let them know what you’re thinking. Maybe they’ll publish it under “Letters to the Editor!”

3. Make Some Change

Tell your Congressman, Assemblywoman, or another politician what you think. While emails and phone calls can work, too, a handwritten letter expressing strong sentiments just might be heard where those aren’t. And you might even get a response, too — after all, even Barak Obama hand writes 10 letters to citizens every day!

4. Cause a Ripple

Interested in changing something in your community but not sure how to go about it? Crafting a letter that you then deliver to every home and business in your area can be a great way to be heard and to find others who agree with you.

5. Have Some Class

Have you ever wanted to feel posh in your communication? Send a letter instead of an email. Bonus points if it’s handwritten.

6. Add That Personal Touch

Sure, most of what you need to tell people doesn’t require a personal letter. But when you want to make sure the recipient of your words knows who you are and that you leave a positive impression, writing a letter instead of sending an email or leaving a voicemail will help you do just that.

7. Get Offline

Give your computer the boot for the day (or the week) and send all your communications by mail. Not only is it a blast from the past, but it lets you unplug, too.

8. Send Your Voice Farther

Though the Internet and email are used widely around the world, there are still places where they aren’t common. If you want to get a message to people in these parts, send a letter. Better yet, get a pen pal and build a relationship.

9. Preserve Memories

Even if your kids don’t remember what’s going on now, they might want to someday. Jotting down little notes for them about events you go to together, special days, and even the things they do that make you smile will help both of you remember what happened and what’s important.

10. Remind Yourself of Now

Sending a letter to your future self might sound pretty cliche, but it’s actually a great way to preserve who you are now, so you can remember later. You may not agree with any of your advice for the future, but you’ll be able to hear your own voice, which might be even better.

11. Speak to the Future

Time capsules are so 1992, but the truth is that they do preserve aspects of an era that are often forgotten. Make your own time capsule for your children or grandchildren by writing letters to them now that they can read in 15 or 20 years.

12. Say “Thanks”

Thank you notes aren’t overrated. In fact, they’re a great way to reach out and touch people. Let them know that you noticed and appreciated their efforts with a special note saying “thanks!”

13. Encourage a Soldier

Whether you agree with the current deployment of troops or not, these folks are risking their lives for the rest of us. Let them know they’re remembered by sending them a letter that says so. Letters to Soldiers is a great place to get started.

14. Communicate With the Elderly

Email is more and more common among older people, but many of them lose the ability to type and read small print eventually. Writing letters allows them to keep in touch with people who love them, and it means so much when you send them something in return.

15. Ask for Help

Customer service being what it is these days, sometimes the best way to get a favorable response is to write a letter. Sure, you have to organize your thoughts and wait for a response, but that’s worth it if your situation is dealt with in a way that makes sense to you.

16. Document Your Concerns

If you have a longstanding beef with a company or a corporation, one of the best ways to show this is to have an extended correspondence on the issues involved. So write your letters and send them off. Even if you don’t get a response, you have ammunition for later.

17. Express Admiration

Is there an author you love, a director whose films never fail to move your heart, or someone else you look up to? Let them know the influence they’ve had on your life with letters. While these may never reach big-name celebrities, they’re the best kind of encouragement to most creative people.

18. Offer Encouragement That Lasts

Encouraging words can be easily said and just as easily forgotten. Make sure the recipient of yours can’t forget them by documenting them in a letter. Who knows? Maybe they’ll find it again, years from now, and tackle something they wouldn’t have had the courage to do before.

19. Give Sympathy

When someone dies, it can be hard to process everything that’s going on. Send your sympathy in a letter, so the bereaved can go back and read it anytime. Include memories of the deceased to make the read a special experience.

20. Get That Job

With the job market being what it is, anything that will give you an edge is worth doing. After you interview, follow up with a thank you note. Be specific, telling the interviewer what you appreciated about meeting them.

21. Leave a Legacy

Write letters to those close to you to be read after your death. This gives you the chance to say all the things that you need to say and gives them a special way to remember you. Even if you’re young, having these prepared can give peace of mind.

22. Make a Child’s Day

Like I said at the start, my daughter loves getting mail. Friends tell me she isn’t alone in that. Make a child happy by sending something, even something small, with their name on the envelope.

Why do you send letters? Let us know in the comments.

Written by Sarah Winfrey and published on Wise Bread. Read more articles from Wise Bread.

Teaching Preschoolers About Money: An Interview With Beth Kobliner

Sarah Winfrey — Fri, 03 Jun 2011 09:48:16 +0000

A while back, I got to interview Dr. Brad Klontz about H&R Block’s new Dollars & Sense program for teaching kids about money. While not everyone agreed with him, most readers did agree that we need to be doing something, whether it’s through the schools or at home, to educate our children about smart money practices. (See also: 6 Random Things I Have Taught My Kids About Money)

Beth Kobliner, author of “Get a Financial Life” and a member of the President’s Advisory Council on Financial Capability, is taking another tactic. She’s the brains behind Sesame Street’s latest efforts to help parents teach even their very young children basic financial principles. I got a chance to talk to her about the importance of financial education, how to start early, and what it was like working with Elmo.

Sarah Winfrey: Why did you feel the need to create a video like this, highlighting personal finance for young children?

Beth Kobliner: Financial education is so important right now! Americans are still reeling from the recession. Most adults are baffled by personal finance. And new research shows that even preschoolers can learn about money. So Sesame Street, in partnership with PNC, worked with experts in the field like me to find a way to help families. The final product, "For Me, for You, for Later: First Steps to Spending, Sharing, and Saving," includes videos, guidebooks for parents, and activities for kids — all for free.

Where do you think most parents struggle the most with teaching their kids about money?

I think the biggest roadblock is fear. Parents think: "How can I teach my own kids if I don't know it myself?" But you don't have to teach your 3-year-old about derivatives! You don't even have to be good at math. Sesame Street's initiative isn't about four-quarters-equal-a-dollar, it's about how you spend, share, and save that dollar.

What is the most important lesson parents can teach their young kids about money?

Two words — delayed gratification. The best way to explain it to children is to tell them that sometimes you have to wait. Remind them that you wait for the swings, you wait for your turn in line, you wait for your birthday…and sometimes, when you really want something, you have to save up until you can buy it.

What is reasonable to expect young children to learn about money? How much can parents effectively teach them at this age?

Kids as young as 3–5 years old can learn so much! Parents should look for everyday teachable moments. Going grocery shopping? Explain needs (half a dozen apples for $4) versus wants (a bag of cookies for the same price). Having a playdate? Encourage your child to share his shovel in the sandbox, and you’re planting the seeds of charitable giving. On the way home? Tell your child that you're going to a gas station a few blocks away because it has a better price.

How did using Sesame Street characters add to the personal finance lesson you're teaching?

Sesame Street characters like Elmo and Cookie Monster add so much levity, joy, and value to this project. After all, who better than Sesame Street, trusted by millions of kids and adults worldwide, to teach young kids and put parents at ease — especially for a topic like this, which many find overwhelming.

And last but not least, what was it like working with Elmo?

I know it’s a cliché, but it really was a dream come true!

Watch Beth’s video, "For Me, For You, For Later." Watch it with your kids, and see what they get out of it. Then, try out some of these discussion questions:

Why does Elmo like the Stupendous Ball?
Why does Elmo try to get more money after he sees Stupendous Ball?
What are you saving your money for right now, or what would you like to save for?
What do you save your money in (piggy bank, jar, etc.), or what do you want to save your money in?
Why doesn’t Elmo buy ice cream after the machine is fixed?
Why is Cookie Monster sad?
Why does Elmo give Cookie Monster $1?
If you were Elmo, would you give Cookie Monster $1?
Why does Elmo choose to buy the Fantastic Ball instead of the Stupendous Ball?

Written by Sarah Winfrey and published on Wise Bread. Read more Personal Finance articles from Wise Bread.

Save Money on Groceries With These Online Tools

Sarah Winfrey — Mon, 25 Apr 2011 10:24:16 +0000

The cost of just about everything seems to be going up these days. Gas is only the most notable example. The prices on groceries are rising steadily to the point that people are in a tizzy after they check out, getting a lot less food for a lot more money.

There are many ways to save on groceries. Unfortunately, these all take time, and that’s a precious commodity in our world, too. However, there are some online tools that can help you save both time and money, so you’re happier, more relaxed, and still eating well. (See also: 3 Reasons Why Buying Groceries Online Is Great)

Menu-Planning Tools

Most people know about the wisdom of menu planning. If you look at what you have in your house and plan your menus around that, you’ll spend less because you won’t buy as many new items each week. In addition, you’ll use up everything you have, so nothing goes to waste. Finally, you won’t be as prone to impulse buys because you’ll know your list has everything on it that you need.

In fact, the only downside to menu planning is that it can take quite a bit of time, especially at the beginning. But there are some handy-dandy websites that will not only allow you to choose the recipes you want to make, but will put together grocery lists and, sometimes, organize them for you, too.

Kitchen Monki

KitchenMonki not only provides you with recipes, but will break those up into an aisle-by-aisle list of what you need to buy. It will also help you scale recipes and figure out if you have enough of an ingredient left or if you need to buy some more.

Meals Matter

MealsMatter is similar, with an added focus on healthy foods. They help you understand nutrition, then provide recipes to help you meet your particular goals.

Relish!

While Relish! charges a $7/month fee, they claim to have better meals and more flexibility. You can choose to go gluten-free, or you can go for options that you know the kids will like. Five meals worth of food should cost around $90, and there’s little thinking involved on your part.

Coupon Resources

For most people, coupons are either a favorite or a least-favorite way to save money. For some, the process of finding, clipping, and using coupons feels tedious. To others, it seems like a no-brainer. And to some, it becomes a way of life, or even an obsession.

If you’d like to use coupons, but you’re intimidated by the process or aren’t sure how to get started, CouponMom is a great site. You’ll have to invest a little time, but it offers articles on how to use coupons, what the different terms that couponers use mean, and how to get started. She also offers printable coupons, online coupons, and a coupon database, as well as a list of coupon deals by state.

Once you know what you’re doing, there are a bazillion coupon sites online. Redplum is one of the best, and one that people have found to be trustworthy, reliable, and worth their time.

Online Price Comparison

One of the most tried-and-true ways to save on groceries is to compare the costs of items you buy regularly and shop where they’re the cheapest. In terms of a time hog, though, this takes the cake. Not only do you have to find all the items in each store you want included in your comparison, but you also have to write down the prices. Then, when you’re done, you have to decide where you’ll save the most. (See also: Save on Groceries with Discount Grocery Stores)

Enter Pricible. This site claims to do your comparison shopping for you. All you need to do is tell it where you live, then enter the item you want to buy. It should give you the price options and the stores reporting the different prices in your area. Once you’ve worked through your standard grocery items with Pricible, you should be able to target your shopping so you can save as much as possible. Note: I didn’t find too many price options in my area, but it seems like other locations around the country had a much higher participation rate on the site.

Hopefully these tools will help alleviate some of the strain that rising food prices can put on frugal people.

Do you have other sites that you use to save on food? Let us know in the comments.

Written by Sarah Winfrey and published on Wise Bread. Read more Shopping articles from Wise Bread.

5 Tried-and-True Strategies for Saving When Your Income Isn't Consistent

Sarah Winfrey — Wed, 06 Apr 2011 10:24:07 +0000

If you’re a freelancer or a contractor, then you know that work seems to come in “feast or famine” cycles. One week, you have more to do every day than 24 hours could possibly hold. The next, you’re twiddling your thumbs.

Unfortunately, living with this cycle means that your income isn’t consistent, either. In fact, if you’re not careful, you can end up without enough to cover food or rent when, just last month, you could have paid for it all several times over.

To make up for this wave-like income cycle, it’s important that people with inconsistent income learn to save. This means that you’ll not only be protected if the checks don’t come one month, but that you’ll be able to have money for retirement.

While saving when your income is inconsistent is hard, too, there are ways to do it effectively. Some of these are new, while some have worked for independent workers down through the years. (See also: 3 Invisible Savings Tips That Work)

1. Save a portion of each check

Pick a percentage, and save that much of any check you receive, no matter how small. Sure, 10% of $100 is only $10, but 10% of $1000 is $100. Over time, even the little bits will add up until your savings is significant.

Pros: You’re always saving. As your business grows and you get more and more checks, your savings will grow, too. Over time, this becomes almost mechanical, and you won’t have to think about it.

Cons: If you’re struggling to live from check to check, this might be impossible right now. In that case, make it an ultimate goal to work towards.

2. Save half of all your large checks

Don’t bother saving when you get small checks, but save 50% of each large check that you get. Of course, you’ll have to determine what qualifies as “large,” and then stick to your plan.

Pros: When you get large checks, your savings will grow significantly. You'll feel like a saving god.

Cons: You don’t get to spend nearly all of the large checks you receive. Also, if one large check is the only check you get in a month, it might be hard to part with half of it.

3. Save first

No matter how you choose to save, put money into your savings accounts (or investments, IRAs, etc.) first. That way, you don’t risk spending it before you realize where it’s gone. This is especially important when income isn’t consistent, as you’ll be more tempted than ever to hold on to the money that comes in, just in case.

Pros: You make sure your savings gets its portion. This is also good for self-discipline in general, as it helps you defer gratification.

Cons: When bills are pressing, it’s hard to discipline yourself to save first. And if you have more bills than money, then it doesn’t make sense to put money in savings, only to move it directly back to the account you’re spending from.

4. Automatically round up and save the difference

This program started with Bank of America’s Keep the Change program. Basically, it automatically rounds all of your purchases up to the nearest dollar and deposits whatever isn’t necessary for the purchase into your savings account. If you don’t want to sign up with them, you can do this yourself.

Pros: Savings is automatic, so you don’t have to think about putting money away. Thus, you generate savings even when money is tight, and you don’t have to put your savings away as a lump sum.

Cons: It will take a while to generate a significant savings if this is the only way you’re attacking the problem. It can also be a tedious process if you’re trying to do it yourself.

5. Set savings goals

No matter how you choose to save, it will help to set some savings goals. This will give you a target, and you’ll be able to judge your success or failure easily. Decide how much you’d like to have, whether it’s for a vacation, an emergency fund, or your car replacement fund, and write down the amount somewhere where you’ll remember it and see it often.

Pros: You have motivation to save. You know where the money you’re saving will go, and what you’ll be able to have once it’s all there.

Cons: When you income isn’t consistent, it can be hard to know what a reasonable savings goal is. While you can work towards any goal slowly, it might be more frustrating than motivating if you aren’t able to get where you want to go.

How have you successfully built up a savings account when income wasn't consistent? What worked for you?

Written by Sarah Winfrey and published on Wise Bread. Read more articles from Wise Bread.

Teaching Kids About Money: An Interview with Dr. Brad Klontz

Sarah Winfrey — Thu, 24 Mar 2011 10:00:08 +0000

It’s commonly accepted that many high school graduates do not have enough education in the area of personal finance. In fact, personal finance classes are not even required for graduation by most high schools. So is it a surprise that when they get out into the world, they are susceptible to getting into credit card debt, neglecting retirement savings, and struggling financially? (See also: Getting Kids Started With the Stock Market)

It seems clear that kids need more education in these areas. But schools balk at offering it, especially in this era of financial cutbacks. They simply don’t have the space in their buildings or curriculum, and they don’t have money to pay teachers to teach these new classes. Many schools admit that personal finance education is a great idea, but they say that someone is going to have to step up and fund it if it’s going to happen.

H&R Block’s Dollars & Sense program is doing just that — offering a curriculum and scholarships for schools committed to teaching teens practical lessons about money before they’re out on their own. The company has provided more than $2 million worth of curriculum and scholarships to high schools and their students worldwide since 2009.

Recently, I had the chance to interview Dr. Brad Klontz, a financial psychologist who helped develop the program, about what it offers and what kids need to know about money. Even if your kids don’t get to participate in a program like H&R Block’s, he has some practical tips for teaching them about personal finance.

Sarah Winfrey: What will students learn in the H&R Block Dollars & Sense curriculum?

Dr. Brad Klontz: H&R Block Dollars & Sense uses Virtual Business® — Personal Finance, a curriculum developed by Knowledge Matters. Students are assigned an avatar and get to make real-world decisions in a simulation environment without the real-world consequences. The skills students learn include: budgeting and saving, choosing and balancing a checking account, getting a credit card and understanding credit, online banking, paying taxes, investing for retirement, time management, finding a job and housing, buying a car, making smart purchases, understanding insurance, and much more.

It sounds like the program focuses on “hands on” learning scenarios. How do these help students learn about money, as opposed to memorizing information on types of investments, etc.?

The simulation software is very hands on, allowing students to learn and practice key personal finance skills in an engaging, interactive environment. The curriculum combines rich visuals and animations to put these important skills into practice — they learn that if they don’t purchase food, they’ll starve; or if they spend all their money on a big-screen TV, they can’t pay rent. They can’t “undo” those choices within the lessons.

Sounds quite practical. Of all the financial lessons out there, what do you think is the number one thing that graduating high school seniors need to know about personal finance or finance in general?

It is critical for teenagers to understand the ins and outs of credit and credit cards. We require students to pass Driver’s Education before issuing them a license to drive a car; however, they can wield a credit card with no training or instruction whatsoever. Shortly after they leave home, teenagers will be offered credit cards. Without an awareness of how credit and credit cards work, they will be set up for failure.

What sort of tactics do you recommend for helping students understand using credit cards or taking on debt?

Nothing works better than direct experience. In addition to talking to teens about how to use credit wisely, parents should give their teenagers the experience of paying interest.

For example, consider advancing their allowance if they ask, but charge them interest. Currently, the average credit card interest rate for someone with bad credit approximates 25%. Since teenagers don’t have a credit history, they would be considered a higher credit risk, so 25% interest is about right. You could advance them their $20 allowance on Friday, and then take $5 out of next week’s allowance. If they take you up on your offer, the instructional moment will arrive the following week when you give them $15 instead of $20. Talk to them about how this experience is similar to carrying a balance on credit cards, where you sacrifice having more money in the future for being unable to delay immediate gratification.

Have you found any personal finance topics appeal to teenagers the most? How does the program incorporate these into what it offers?

Teenagers get very excited about the idea of compound interest. When they see how saving just $100 per month invested at 12% interest would give them over $3 million dollars by the time they are 60, it blows their minds. If all teenagers learned and practiced this very simple lesson, we would have a nation of millionaires within a generation. The simulation experiences H&R Block Dollars & Sense provides gives students the opportunity to experience compound interest versus just hearing about it.

What advice would you have for parents looking to supplement the financial education their child receives (or doesn’t receive) in school?

Because money management is often a difficult discussion for parents and teens to have, here are a few tactics parents can implement when helping their teens become smarter about money management:

Hold off on giving them advice and just listen. Or ask questions to help start the conversation, such as:
- How do you think people get wealthy?
- What are your financial goals?
- What do you worry about regarding money?
Allow your kids to experiment, make mistakes and learn from them. For example, give them an allowance, but don’t bail them out if they run out of money. This lesson provides an opportunity to examine financial missteps objectively and come up with strategies to do it differently next time.
Encourage them to think before making a purchase and to wait a day or a week before buying it. If they still want it, it’s a good opportunity to talk about a spending plan.
Model healthy financial behaviors your teen can follow. Kids learn more by what they see their parents do than what they say. For example, it’s a good idea to decide on something you want to purchase as a family. Then involve them in the budgeting and saving for it.

[End of Interview]

As Dr. Klontz suggested, there’s so much that parents can do to help their kids learn about personal finance, and these ideas are just the beginning. If you’re interested in getting personal finance curriculum into your child’s school, talk to some administrators and see if they’re willing to apply for some of H&R Block’s scholarships.

Right now, some schools have already submitted their applications to be part of this program. Until April 15, you can go online at H&R Block’s Dollars & Sense website to view these applications and vote for the school or schools that you think most deserve the chance to teach this curriculum. The winners will receive their grants by the end of the current school year. It doesn’t take long to vote, and your time goes towards helping high schoolers learn valuable financial skills.

Written by Sarah Winfrey and published on Wise Bread. Read more Personal Finance articles from Wise Bread.

How to Get and Give Honest Feedback

Sarah Winfrey — Tue, 15 Mar 2011 12:36:13 +0000

Most of us have been in situations where someone needs to give some honest feedback, but no one is willing to say anything critical. We’ve also been the ones in need of receiving those difficult words, even if we didn’t know it because no one came forward to speak. These situations can become more and more awkward the longer they go on, and often the truth is eventually spewed out in frustrated, angry words. (See also: 25 Ways to Say Thanks)

Instead of living in fear of these difficult situations, decide to be honest and authentic, and invite those around you to hold to the same high standards. It might seem impossible to actually get the real feedback you want and to give it to others, but it doesn’t have to be. Here are some thoughts as you pursue this goal.

When Receiving Feedback

It can be hard enough to get the real feedback you want, let alone to respond to it well. If it's hard for you to hear difficult things about yourself or you're not sure how to go about getting people to be honest with you in the first place, here are some tips that will help.

DO be up front about the kind of feedback you want.

If you want people to feel free to give you negative feedback, make sure they have explicit permission from you to do so. This won’t guarantee an honest response, but it will create the kind of space where they can be honest if they want to.

DO ask probing questions.

It’s easy to gloss over a critique or a criticism when you’re giving general feedback. Asking specific questions forces a person to lie to you directly if they’re going to avoid the topic, which is harder than simply skimming around it in conversation.

DO make sure you’ve heard the feedback correctly.

Whether positive or negative, you want to make sure you know what the other person is really saying. Say, “So what you want me to understand is...” then fill in the blank with what you heard. This gives them a chance to clarify, and helps you make sure you’re acting on the right information.

DO give yourself some time to take it in.

When honest feedback is difficult to hear, it can be easy to brush it aside or, alternatively, to be crushed by it. Instead, take some time. Evaluate the feedback based on what you know of the situation. Decide if it is valid, partially valid, or not at all valid, and act based on that decision.

DON’T get defensive.

Often the first response to criticism is to lash out at the person who offers it. However, people who’ve been on the receiving end of a lashing-out once aren’t likely to give you honest feedback again. If you want others to know they can tell you the truth, bite back any defensive words and hear the person out.

DON’T let the feedback crush you.

It’s easy to forget that you’re a valuable, lovable person when someone has just told you where you’re not measuring up. No matter what the feedback is, remind yourself that the issue isn’t present in your entire life. If you’re feeling down, take some time away from thinking about the feedback until you can look at it more objectively.

DON’T interrupt.

It’s hard to give honest feedback, and you can honor the courage of the person who is willing to tell you the truth by letting them finish what they have to say. This is also a good way to make sure you’re not defensive, because you can’t defend yourself if you’re not talking.

DON’T treat the person differently after the confrontation.

If someone gives you honest feedback that you decide is valid, it can be easy to avoid them after that. After all, their words can be embarrassing, and often mean you need to make some changes in your life. However, being shunned is no just reward for honesty.

When Giving Feedback

At first glance, it seems easier to give difficult feedback than to receive it. However, figuring out how to make yourself heard without being offensive or driving the other person away can be even harder than hearing tough stuff about yourself. If you want to be honest but keep the relationship intact, make sure you follow these tips.

DO ask what kind of response is requested.

Making this explicit will be in your favor if you say something negative and the other person responds poorly. When you can gently remind them, “But you told me you wanted to know what I really thought,” it can help them reconsider their response.

DO apply the principle of charity before you say anything at all.

The principle of charity means that you choose to interpret someone’s behavior in the best possible light. If there’s any question or ambiguity in the situation at all, give another person the benefit of the doubt.

DO be gentle.

If you have something negative to say, that’s okay. But there’s no need to be hurtful or harsh when you’re saying something that might offend someone else. If you know that particular words or phrases could be especially upsetting, avoid them. Speak quietly, make eye contact, and give the person time to absorb what you’re saying.

DO give alternatives if you can think of them.

Many times, people make the choices they make because they feel like there’s no other option. When you say something negative, then, you’re telling them that their one choice still isn’t good enough. If you can come up with some other options, it will help them hear what you have to say.

DON’T give difficult feedback when you’re upset.

If you’re angry or frustrated with someone, it’s easy to spew out everything you think is wrong with that person. However, the middle of an argument isn’t a time or place where they’re going to be able to hear you. Instead, walk away from the confrontation, figure out what you want to say, and go back and say it when you’re in control of your emotions.

DON’T make it all about you.

When giving criticism, it can be easy to just tell someone what they’re doing that makes your life more difficult. However, making your life difficult isn’t inherently something they should be censured for, and using that as a reason might make them feel angrier than they otherwise would. Instead, find objective reasons to question their behavior, since these are harder for them to get around.

DON’T give only negative feedback.

When your main point for someone is a criticism, it’s easy to say that and be done. However, it’s easier to hear negative feedback when there’s some positive mixed in, too. The more specific the positive feedback, the more genuine it will feel to the person receiving it, and the more open they’ll be to the other things you have to say, too.

DON’T keep pushing.

Your responsibility is to give the feedback, not to make the person change. You cannot force anyone to do anything differently. It’s not your right and it’s not your responsibility. If someone doesn’t listen, you may need to make changes in your own life based on their actions, but pushing them will not help. Give them some time and space, and they may come around.

When you have to give or receive honest feedback, what do you do to make it easier? We’d love to hear your thoughts.

Written by Sarah Winfrey and published on Wise Bread. Read more Personal Development articles from Wise Bread.

When Being an Entrepreneur Isn't Sexy

Sarah Winfrey — Fri, 04 Mar 2011 13:00:32 +0000

When looking at the fabric walls of your small chunk of cubicle nation, it's easy to think that the entrepreneurial life is sexy. After all, anything seems sexier than staring at the gray-walls, white-ceiling combination that most cube farms sport. (See also: Is Now the Time to Start Your Own Business?)

While it may be true that the entrepreneurial life is the one for you, before you leave cube-sweet-cube, you should remember that the entrepreneurial life isn’t always sexy. In fact, there are times when the cube life seems damn sexy indeed. If you don’t believe me, consider the following scenarios.

1. When You’re Up All Night to Meet a Deadline

Granted, some employers make their employees do this sort of thing, too, but it’s much more common for entrepreneurs. Whether you take a huge job because it’s too good an opportunity to pass up, you take on a tight deadline because you need the money, or you’ve got to work at night because you played Wii all day, the morning after one of these all-nighters will leave you feeling worse than hung over. Definitely not sexy.

2. When You Can’t Buy Groceries Until You Get Paid

When you’re an entrepreneur, it’s easy to buy the line that the check is in the mail. Even if it really is, sometimes it can’t get to you soon enough. When you’re starving and standing in the grocery store looking at food you can’t buy while frantically checking your bank account to see if some money cleared, you’ll definitely feel something less than sexy.

3. When You Realize You Spent All Day in Your Pajamas

Entrepreneurial work can become all-consuming, particularly when you absolutely have to make money and don’t see how you can, or when you’ve taken on a large project that you now have to figure out how to do. When you’re working by yourself, for yourself, out of your home, it’s easy to roll out of bed and spend most of the day on the computer, only to roll back in bed at the end of the day. When you’re feeling rumpled, smelly, and downright nasty, sexy will be the farthest thing from your mind.

4. When It Dawns on You That Most of Your Recipes Contain Ramen

Now you’re past the point where you can’t afford food. However, there’s a time in many entrepreneurs' lives when cheap staples — rice, beans, Top Ramen — become central parts of the diet. There’s money in the bank, but not quite enough to buy that steak. The thought of bringing home a date (or, face it, your mother) and only being able to feed her beans and rice is somewhat less than sexy, too.

5. When You're Compromising to Make a Buck

Most entrepreneurs start out with high principles and a strong sense of calling. They have a vision for what they want to do, how they want to do it, and who needs their services. But when getting started takes longer than you’d hoped, it’s tempting to take contracts that aren’t exactly what you wanted to do simply because you’ll get paid for completing them. When you feel like a hack or like the reality of working for yourself is less than what you’d hoped for, it’s hard to feel like a sex god.

None of this is to say that you shouldn’t try the entrepreneurial life if it calls to you. But it’s good to have a reality check, so you remember the costs of all that freedom. Is it worth it? You’ll have to decide that for yourself.

Written by Sarah Winfrey and published on Wise Bread. Read more Entrepreneurship articles from Wise Bread.

Living the Savvy Life: A Review

Sarah Winfrey — Fri, 11 Feb 2011 13:00:16 +0000

Living the Savvy Life isn’t strictly a personal finance book, though it includes tips for spending less, saving more, and achieving your financial goals. The focus of the book is on helping readers overhaul their lifestyle based on their personal goals and values (this is what the authors call “the savvy life”). If there are things you’ve always wanted to achieve but haven’t found the time and money to get started, this book can give you both the kick and the tips you need to begin today.

Frugality with a Purpose

The authors of Living the Savvy Life, Melissa Tosetti and Kevin Gibbons, don’t advocate spending less for it’s own sake, but so that you can do the things you really want to do and achieve goals that are meaningful to you. For instance, many people say they want to travel but also say that they don’t have the money or the time to do it. Tosetti gives real-life examples of how she and her husband cut specific expenses and used the money they saved to pay for trips all over the world. (See also: How to Save Without Goals)

The authors don’t just propound this principle, but show you how you can apply it throughout your life. They discuss it in terms of finances, and in terms of time and possessions, too. And once they’ve talked about their ideas, they give you tips for actually cutting back. They offer strategies for getting rid of clutter so you can highlight the possessions you truly value, and they talk about choosing clothes that flatter you and will continue to be in style, and choosing items that complement the wardrobe you already have.

Even if you’re not quite sure what you’d like to spend your time and money doing, Tosetti and Gibbons have something to offer. In addition to their money and time-management tips, they have resources to help you determine where you want to focus your energies. By answering some simple questions, they help you decide what you’re passionate about and what doesn’t matter so much.

With its helpful-but-unassuming tone, Living the Savvy Life isn’t a book that you’ll hate, even if you’ve somehow heard everything it says before. In fact, you may find yourself wanting to befriend the authors simply because they seem like warm, interesting people. This lends itself to the book’s overall usefulness, because no one likes to feel preached to. It’s much easier to hear some of the things Tosetti and Gibbons have to say from people you’d invite into your living room for a chat.

A Renewed Focus on My Goals

Since it’s easy to get derailed when you’re living a savvy life in a culture that wants you to spend, spend, spend, they also offer some insights on staying motivated, focusing on your own goals, and getting back on track when things fall apart. They even offer tips on how to evaluate purchases when you’re standing in the middle of the store, unsure about the items you’ve brought to the checkout stand.

As someone who knows a lot about how to save money and who practices frugality as a matter of habit, I didn’t expect too much from yet another book about personal finance. However, Living the Savvy Life surprised me. It articulated many of the principles I’ve always lived by (saving in one area to spend in another), and it helped me put words to some of the things that I want to focus on. All of this has provided me with motivation that I didn’t have before, so I feel renewed in my efforts to be deliberate about where I choose to spend my time and money in order to focus my efforts and achieve my goals.

Who Should Read Living the Savvy Life?

It’s not too often that I find a book I would recommend to almost anyone, but Living the Savvy Life seems like one that nearly everyone I know could benefit from reading in one capacity or another. For the people who have already discovered most of the practical savings tips it contains, it offers motivation for pursuing financial and personal goals that are meaningful. Even for those with a lot of self-knowledge about what they value and why, it offers the chance to articulate these things again, perhaps in a new way, and to recommit to focusing on the things that matter.

P.S. If you haven’t heard of TheSavvyLife.com, you should check it out, too. The site offers articles and resources that aren’t in the book, but that will help you move towards the goals the book puts forth.

Disclosure: I received a free copy of Living the Savvy Life for review.

Written by Sarah Winfrey and published on Wise Bread. Read more Frugal Living articles from Wise Bread.

5 Things We Learned When Our Car Was Stolen

Sarah Winfrey — Thu, 20 Jan 2011 13:00:11 +0000

My family just moved cross-country. Moving is always crazy, but ours was further complicated by the fact that one of our cars, loaded down with stuff, was stolen from a hotel parking lot in Las Vegas. Over the last several weeks, we’ve waded through paperwork and spent quite a bit of time on the phone. At this point, we’re experts in having a car stolen. While we wouldn’t have chosen that particular field of expertise, at least we can pass what we've learned on to all of you. Here’s what we learned.

1. Video Cameras Don’t Necessarily Equal Safety

We purposely parked in a lot with video monitoring — rather prominent video monitoring, might I add. However, those cameras didn’t deter the thieves, and they didn’t help the police catch them. We might have felt safer with them there, but the cameras actually didn’t add anything to the overall safety of our stuff.

As it turns out, avoiding video cameras is fairly easy, especially for experienced thieves. It’s much better to park in a lot where an attendant is present (if possible) or at least one that can be seen from a front desk or other manned station.

2. Having a Car Stolen Is Stressful

This might go without saying, but we found that the stress affected us more than we thought it would and continues to do so for longer than we thought it would.

Not only is having a car stolen violating and frustrating, but life continues to remind you of what you lost. Because we were moving, we still run across things that we realize must have been in the car that was taken, since we can’t find them anywhere else. Every time that happens, we feel the stress of the situation all over again.

We’ve found it helpful to work on all of the paperwork, etc., that comes along with a stolen vehicle in chunks, and then to forget about it until the next time we focus on it. That way, we get a break, and we don’t have to worry about it all the time.

3. Police Don’t Always Take Stolen Cars Very Seriously

While having our car stolen was a big deal for us, it wasn’t for the police. They didn’t even send a regular officer, just a cadet who gave us misleading information about how soon our car would probably be found.

On the one hand, you can’t really blame the police for this attitude. Especially in places like Vegas, cars get stolen all the time. It’s nothing new to them, and so it’s hard for them to get excited about it. On the other hand, it was a very big deal for us to lose that vehicle, and it only made things more stressful to realize the police weren’t going to go out of their way to help us. If we’d known this ahead of time, the whole process would have been much easier.

4. A Car’s Value Isn’t Just How Much You Could Get for It

We didn’t carry comprehensive insurance on the car that got stolen because the numbers didn’t work out. The car didn’t have enough monetary value to justify how much we’d have spent on the coverage.

However, we’ve realized that the car’s value to us went beyond its Blue Book value. For us, it was a way to get us from here to there. It represented freedom and ease of transportation, which are hard to assign a dollar value to.

While we still think we made the right decision in not carrying more coverage on the car, we will think about such things differently in the future. If a car like that one is our only vehicle, for instance, we very well might carry comprehensive on it in the future while we wouldn’t have in the past.

5. Property Insurance Is a Lifesaver

Whether you have homeowner’s insurance, renter’s insurance, or some other type of property coverage, that’s what pays for any items inside your car if it gets stolen. This was lucky for us, because we had renter’s coverage even though we didn’t carry comprehensive on the car. Thus, we’ll be getting something for the items that were stolen even though the insurance won’t pay to replace the vehicle.

Getting our insurance to pay, though, has been a hassle. They’re not being difficult, but they need information about the stuff in the car that we don’t readily have available. Moving forward, we’ll keep better track of when we purchase large items and how much we pay for them, so we have that at our fingertips if something like this happens again.

I hope that you never have a vehicle stolen. However, if you do, I hope you remember these tips and they help make your situation easier. And if you’ve had a vehicle stolen and have anything to add, feel free to leave a comment.

Written by Sarah Winfrey and published on Wise Bread. Read more Consumer Affairs articles from Wise Bread.

5 Tips for Using the Internet at Work

Sarah Winfrey — Tue, 14 Dec 2010 15:00:10 +0000

Most employees get on the Internet for personal reasons while they’re at work. It makes sense — when you’re online all day anyway, you may as well check your personal email, Twitter, or even Facebook.

Many employers don’t mind if their employees spend some personal time online, as long as it doesn’t interfere with customer service or hamper productivity. In order to keep it that way, though, there are some tips you should keep in mind. They are, for the most part, common sense, but you might be surprised how many employees break them. (See also: 5 Ways Being Nice at Work Can Payoff)

1. Know Your Company’s Policy

More and more companies have written policies covering what their employees can and cannot do online from the office. Ask about this or look it up before you have the chance to get in trouble, as it will look especially bad to be found breaking it if you’re new to the job. While you may feel awkward asking about checking personal email at your orientation, doing so will help you get started on the right foot.

2. Avoid Blocked Websites

Some companies have started blocking social networking sites or video sites, like YouTube, so that computers on their premises cannot access them. Usually the programs that block these sites also record which computers are trying to access them. If you make repeated attempts, or more attempts than most people do, you may find yourself having an awkward meeting with HR.

3. Watch What You Say

When you’re at work, you represent your company, even if you’re sending a personal email. That may not seem straightforward to you, but it will certainly seem that way for your company. Thus it’s important to watch your words, especially if there’s the chance that a keylogger is installed on your computer.

Refrain from swearing, tirades, rants, and other overly emotional communication at work. Even if you’re not talking about your company directly, these sorts of communications may garner you more attention than you’re looking for.

4. Don’t Knock Your Company

This one may seem particularly obvious, but people still get fired regularly for the things they say about their company online. If you have something negative to say about your job, your corporation, your boss, your coworkers, or anything possibly pertaining to work, just don’t say it online. Don’t Tweet it, don’t post it to Facebook, don’t blog about it, and don’t email anyone about it.

If you’re angry about a specific situation and you need to talk, take a break (even if you have to take personal or vacation time to do it) and call someone close to you. Go outside, have your rant, and be done with it. If you need to tell someone at work what’s going on, do it in person, not via the web.

5. Don’t Give Away Company Secrets

Again, this one should be obvious. But people email their work passwords to a personal account all the time. Even if you have a perfectly legitimate reason for doing this, at least clear it with your supervisor first. That way, if the company has certain keystrokes flagged and you trigger an alarm, you have support when defending yourself against the charges.

Emails about trading information, new designs, product revisions, personnel reviews, and more should all be sent encrypted if they’re leaving your company. Some may disagree with this, but you want to cover yourself in case something gets leaked.

It goes without saying that you shouldn’t pass secure information via the Internet for illegal purposes, either. Your job and your reputation are more important than any data you might obtain.

It’s easy to be a responsible employee and still keep up with your personal life online while at work. Just make sure you’re not being a moron, and do what you know is right.

Written by Sarah Winfrey and published on Wise Bread. Read more Career Building articles from Wise Bread.

Girly Fun on a Budget

Sarah Winfrey — Mon, 25 Oct 2010 13:00:11 +0000

I don’t consider myself much of a girly-girl, but there are days when I would give anything for a trip to a spa or some new boots. These days, though, the cash isn’t flowing quite as fast as it used to, and I’m finding new ways to get my girly fix so I can feel comfortable with myself as a woman but also save more. Here are some of the tricks I’ve found. (See also: 47 Cheap, Fun Things to Do This Weekend)

Shop Designer on a Discount

If designer clothes make you feel like a woman, you can get them without spending a fortune. In fact, even if you have the money, it doesn’t make sense to buy designer clothes at full price. After all, saving is saving, whether you have a million dollars or just a thousand.

While you will still pay more for designer clothes than you might pay for brands that aren’t as well-known, you can achieve significant savings shopping online, as well as at sample sales. Try Bluefly, Gilt Group, HauteLook, or Beyond the Rack to get you started.

Focus on Accessories

Every girl knows that some jewelry or a bag can make an outfit. If you’re feeling tired of your clothes or think they're looking outdated, but you can’t afford to replace them, try buying some accessories to spice things up. These can change your look enough that most people will think you did manage to buy a whole new wardrobe.

Belts are big this season, and so are scarves. Both of these offer you the chance to dramatically change an outfit without spending too much money. Try a trendy store like H&M or Forever 21 to update your look without going broke.

Plan a Spa Day . . . at Home

Every girl likes a day at the spa, but a couple of hours there can easily cost what you’ve spent all week earning. Instead of going out, get some friends and spend the day inside. You can do masks, peels, massages, body wraps, and more, all in the comfort of your own house and without spending too much.

Enhance your spa day by making a plan ahead of time. Follow some of the suggestions on the pages below, and you won’t even wish you had the money to go to a real spa:

Learn to Do Your Own Nails

There’s nothing that lifts the spirits (at least for some women) like a good mani-pedi. And while one trip to the salon won’t break most budgets, weekly or every-other-week visits can add up after several months or a year. To save money, learn some basic mani-pedi skills that you can do on your own, or have someone else help you in exchange for your help on her nails.

You may still want to visit your salon every month or two, but you can easily get the skills you need to do normal upkeep on your nails by yourself. It takes a little effort, but you’ll get your reward when you have money to spend on something else fun. To get started, check out these tips on how to do a French Manicure at Home.

Are you a girly-girl, or do you just need a girly fix every now and then? How do you get it without breaking the bank?

Written by Sarah Winfrey and published on Wise Bread. Read more articles from Wise Bread.

Wise Bread Blogger on the NBC News with Brian Williams

Sarah Winfrey — Sun, 10 Oct 2010 11:54:40 +0000

On Friday, September 24th, my family was on the NBC Nightly News talking about changes we've made in the way we use credit cards because of the financial crisis. We'd interviewed with one of their L.A. reporters, Kristen Walker, a couple of weeks previous.

Filming was a blast. We were a little nervous, not knowing what they'd ask or, after the interview, what clips they'd use. While both my husband and I felt like we said some more intelligent, compelling things than were in the clips they actually used, overall the process was a blast. And shopping at Target with the camera guy was a trip, too!

Check out my clip from the show:

Sarah Winfrey on ABC News, September 2010

The topic was a timely one for us. My husband, a college professor, lost his job on July 1, 2010, because the college he worked for didn't have the incoming tuition to renew his contract. We knew it was coming and have cut back on our credit card use since early this year. While we've always been responsible with our cards, we wanted to be sure that we could pay the bill each month.

We've also found that it's easier to limit our spending when we use cash or debit cards instead of credit cards. When you actually have to hand over bills or when you know that the bottom line in your checking account will take a direct hit, you're less likely to spend money on things you don't need.

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Written by Sarah Winfrey and published on Wise Bread. Read more Credit Cards articles from Wise Bread.

The Best-Kept Secret to Frugal Living

Sarah Winfrey — Fri, 24 Sep 2010 11:12:28 +0000

It’s easy to take the checklist approach to personal finance and frugality. Save more. Check. Spend less. Check. Invest wisely. Check.

While that works for some people, though, there are others who find it impossible and even the most conscientious Type A will have moments where they’re not motivated by check boxes and lists of numbers.

Without the right motivations, financially responsible, frugal living isn’t only difficult, it’s impossible. Sure, you might be able to maintain momentum long enough to pay down some credit cards or make it through a rough patch, but you won’t make long-term lifestyle changes. (See also: 25 Frugal Changes You Can Make Today)

To do that, you need to do more than change how you act. You need to do more than change how you think. The secret?

Be content with your life as it is.

The best path to becoming frugal through and through is to realize and appreciate what you have. Only then will you be free from the desire for more, because you won’t be looking to the next thing, the next purchase, to make your life complete.

Being content means recognizing that no one possession nor amount of possessions will ever make you happy or fulfill you. It means realizing that you will never have it all. And it means choosing the life you have, with its difficulties and frustrations as well as its special joys, over any life, past or present, that now only exists in your head.

Finding contentment means learning to be present, and to choose the now. Often, it means making that choice over and over and over again, every time you feel discontent rising in you, even under hard circumstances.

The content stance acknowledges that life as it is isn’t perfect and that it never will be. Becoming content might mean making peace with a past where you had more things and more financial freedom, and choosing to live in the present instead. Or it might mean choosing this moment’s financial hardships instead of focusing on dreams of future abundance, even when that’s what you’re working towards every day.

The point of contentment isn’t a trance-like unawareness of the difficult things in your life, but to accept them, particularly if you can’t do anything about them. When you’ve done this, you won’t need to buy into consumerism’s cycles because you won’t need to spend to be happy.

Contentment comes easier for some people than for others, but anyone can find it. Start small. Begin to notice your frustrations and things that you wish were different. Instead of trying to change them or make yourself happier, just hold these things. Look at them, examining them and how you react to them.

As you do this, you’ll find in yourself the growing ability to just let these things go and let them be. And as this ability grows, you’ll find yourself spending less, because you won’t need it anymore.

Tips for Finding Contentment

Remind yourself of what you have when confronted with what you don’t have.
Ask yourself if a purchase will make you happier long-term, or whether you’re buying for short-term pleasure.
Stay away from advertising: watch movies and TV on DVD; determine the articles you want to read from the table of contents in a magazine, instead of by flipping through; copy and past web content into a blank document to read
Spend time with people you love who love you back.
Learn to form meaningful relationships that go beyond “How are you?” and “The chicken sure looks great.”
Discover how you feel when you’re discontent - common signs include tightened muscles in your neck, shoulders and back, stomachaches, general malaise.
Tell yourself the truth - “I have enough.”
End each day by remembering the moments that you liked best and the ones that meant the most to you.

Written by Sarah Winfrey and published on Wise Bread. Read more Frugal Living articles from Wise Bread.

Save on Groceries with Discount Grocery Stores

Sarah Winfrey — Wed, 08 Sep 2010 13:00:05 +0000

With food prices rising all the time, it costs more and more to feed a family these days. While some people become rabid coupon-cutting ninjas and others begin to make more meals out of basics like beans and rice, still others take a different route. They find a bargain grocery store in their area and do the bulk of their shopping there.

What is a bargain grocery store?

There are several different types of bargain stores. Some are outlet stores where food that is refused by regular grocery stores is sold at lower prices. Many times, the food is only refused because of a minor packaging error, so you can get the same quality at lower prices.

Other bargain grocery stores specialize in a certain brand. When items get close to their expiration date, they are moved to these stores and sold at lower prices. While you have to eat foods bought at these stores quickly, it will cost you much less.

Finally, there are "regular" grocery stores that simply sell things at lower prices than their competitors. Their business plan involves moving more items at a lower profit margin so they can stay in business and continue to sell items for less.

Where are the bargain grocery stores?

Bargain grocery stores exist in the same sorts of spots as regular grocery stores. If the stores in your area tend to be part of a strip mall, look there. If they tend to be free standing a little bit out of town, look there.

Most companies that run bargain grocery stores are smaller than those that run large stores, or the bargain stores may exist as a subsidiary of a company that also runs a national chain. Therefore, the names of the stores available in your area may be different from those available in another area. Since these brands aren't as recognizable, you may have to do some searching to find them.

Saving money with a bargain grocer.

There are lots of ways to save at a bargain grocery store. Many times, you'll save on almost anything you purchase there. If you combine that deal with a coupon or a sale, you'll save even more. Many of these stores also offer store brands of popular items, and these will cost you less than the regular version.

Some bargain grocers to consider.

This isn't an exclusive list of bargain grocery stores, but you can start here to see if any of these are in your area.

Save-A-Lot

Relatively new to the bargain grocery scene, Save-A-Lot promises a 40% discount from regular grocery stores with more if you use their printable coupons. Their site will help you locate a store in your area, and also has lots of yummy recipes featuring their food.

As a side note, when they found out I was interested in doing an article on bargain grocers, Save-A-Lot sent me some samples of their store-brand items. They are good — as in, you won't be able to tell the difference between them and the usual brands.

Aldi

Aldi claims to help you shop smarter, and many reviews online confirm this. Their website features special buys, where you can save even more than usual. In addition, their meal planner will help you utilize the bargains you can get at the store to their utmost.

Grocery Outlet

Though their website won't let you see all their products, you can browse their sales to get a feel for what they carry. Grocery Outlet features a blog and a Twitter feed, both of which can help you get access to additional savings and can help you get ideas for making meals out of sale items.

Food 4 Less

A subsidiary of Kroger, Food 4 Less offer print-at-home coupons, the opportunity to purchase gift cards for many different stores, and programs to help local schools earn money, just like the bigger grocery stores. In addition, you get the usual savings you can expect from a bargain grocery store.

If none of these stores are in your area, simply search online or ask around. Most urban areas have bargain grocers, and they can help trim your food budget more than you thought possible.

Written by Sarah Winfrey and published on Wise Bread. Read more Food and Drink articles from Wise Bread.

Save Money on Baby Goodies With Daily Deal Websites

Sarah Winfrey — Thu, 19 Aug 2010 13:00:09 +0000

Every parent knows that buying baby goods can wipe out a budget faster than you can say, "It's a Girl!" Setting up a nursery, buying a stroller, bottles, clothes, pacifiers, blankets, and more can cost a good chunk of change, and that's before you buy any of the everyday things, like soap, shampoo, diapers and wipes. By the time you're done, you've spent a fortune on the little cutie pie.

If you want to buy items that are more than just functional, you'll have to spend even more. Sure, there are a lot of cool gadgets and gizmos that make life with a little one easier or more fun, but the thought of spending even more money makes some parents feel slightly ill.

For web-savvy parents, though, there are several baby-oriented "Daily Deal" sites (think Woot.com does smiling, squealing infants) that can help you get some of these fun items for a price much less than what you'd pay in the store. And sometimes, they even have baby staples, so you can save money on things you'll use every day.

BabyHalfOff

BabyHalfOff looks specifically for items and brands that parents love. Recent items include everything from lunchboxes to Wikki Stix, diaper bags, tutus, and more. With a smattering of items from brands you know and even more from ones you haven't discovered yet, there's always something more to see at BabyHalfOff. Sure, you won't want to purchase every item that comes across your screen, but you'll probably find more than one that you want. At 50% or more off of regular retail price, you're more likely to be able to afford them, too.

Bonus: BabyHalfOff keeps an archive page, where you can continue to order an item until it's out of stock. While some Daily Deal sites make you wait until they put the item up for sale again or clear out their stock, BabyHalfOff will let you access and order yesterday's deal until it's gone.

BabySteals

BabySteals is very similar to BabyHalfOff, though they tend to focus on higher end items or items from well-known brands. While they offer fewer indie brands than BabyHalfOff, they tend to feature tried-and-true items that have sold well in the past or that parents couldn't get enough of. They occasionally feature maternity items as well, so both mom and baby can be pampered for 50-80% off retail price.

BabySteals doesn't have an archive page like BabyHalfOff, but they do sell off any extra stock from the previous week on the weekends, sometimes offering more than one deal each day. If you miss something, there's often another chance if you keep your eyes peeled all weekend.

EcoBabyBuys

EcoBabyBuys adds an interesting twist to the Daily Deal game. In addition to highlighting brands and items that parents love, they work with companies that produce eco-friendly, non-toxic, free-trade items. Like the sites mentioned above, they offer one deal each day and sell it until the day ends or the deal is gone.

Parents concerned about the chemicals their infants are exposed to will be relieved to find a site like EcoBabyBuys. Not only are the deals awesome, but the items are free of the toxins that can be found in most baby things.

MamaBargains

MamaBargains is not a traditional Daily Deal site. Instead of offering just one deal every day, they offer one deal until it's gone, then another and another and another. Depending on how fast items go, they can end up putting any number of items up for sale in a day. This means even more chances to score a great deal, and more items available for purchase. They often have big-ticket items by name brands, and you won't get these things for any less than this site offers.

MamaBargains also offers maternity and nursing items pretty regularly, so moms in need should keep an eye out. If you're wavering on a particular item and want some more time, check the status bar next to each item. It will give you some idea as to whether you need to buy now or if you can take your time.

For Older Kids

If you don't have babies anymore, there's no need to feel left out. KidSteals is a sister site to BabySteals, and they feature items for toddlers and preschoolers. KidsWoot offers items for kids of all ages in the traditional Woot! style.

Written by Sarah Winfrey and published on Wise Bread. Read more Shopping articles from Wise Bread.

The First Payday: Helping Your Teen Understand Money

Sarah Winfrey — Thu, 15 Jul 2010 13:00:05 +0000

Teens vary in their responses to getting a job. Some long for the freedom that having their own money promises. They want an increased cash flow for their clothing end entertainment budgets. Others are less than thrilled. These dread spending so much of their time doing what someone else wants them to do.

Whether your teen is excited or bored at the prospect of having a job this summer, YOU can respond to their newfound extracurricular activity by helping them learn not only what it takes to be a good employee, but how to make the most of the money they’ve earned.

Introduce Budgeting

The big, bad, “B” word doesn’t have to intimidate your teen. Sit down with him or her and help them work out a plan for the money they’re earning. Since even the most low-key kid has stuff he wants to buy, motivate him by asking how long it will take him to save up for what he wants. Remind him of any necessary expenses, like car insurance and gas, and encourage him to put away at least a little bit for the future.

Whether your child takes all of your suggestions or not, he’s hearing information that he may not have heard before. If he doesn’t apply it now, that doesn’t mean he won’t in the future.

Talk about Taxation

Many teens are surprised, and not in a good way, when they see how much the government takes out of each of their paychecks. There’s no better time to talk about where tax money goes and why she’s required to pay. If your teen is interested, talk about the different kinds of tax money taken out (look at the pay stub for the amounts).

If nothing else, you can remind your teen that she will probably get some money back the next year. Offer to work with her on her taxes at the end of the year to make sure she gets as much as she can. Then when tax time rolls around, make sure she sits down with you and understands the process.

Encourage Savings

You can’t make a teenager do anything, least of all save his money. But you can encourage it. Try helping your teen select a specific goal to save for, as t his will motivate him to actually put his money away.

If your teen is going to be paying for some or all of his college expenses himself, remind him of this. Let him know where you’re willing and able to help out, and help him figure out how much he’ll need to cover the rest. Seeing these numbers may help him save, once he realizes just how long he’ll have to work to get there.

Explain Credit

It’s never too early to explain credit to your teen. As soon as she’s 18, she’ll most likely have card offers coming to her, so it’s a good idea to make sure she already understands how it works. Make sure she knows that she’s still responsible to pay for everything she purchases, and explain how the concept of interest means she could end up spending even more than the listed price for an item.

If your teen is responsible and you’re comfortable, many credit cards will let you put her on your account. This will give her some “real world” experience with credit cards before she’s on her own.

Be There when They Fail

Most teens will make financial mistakes somewhere along the line. Even if all you’ve ever modeled and taught are good money habits, they’re likely to spend too much, overdraw an account, charge more than they have, or get in some other kind of financial trouble. While you don’t want to bail them out entirely, you also don’t want to condemn or criticize them. Everyone makes mistakes. For teenagers in particular, it’s how they learn.

Beyond all of these suggestions, encourage your teens to enjoy the money they earn. Remind them that, after the work of budgeting and saving, comes the pleasure of spending what is left. Enjoying their money is part of the process, too, and don’t let them forget it!

Written by Sarah Winfrey and published on Wise Bread. Read more Family articles from Wise Bread.

Facing Financial Insecurity? Lower Your Stress Levels

Sarah Winfrey — Wed, 07 Jul 2010 14:00:05 +0000

A new survey suggests that 9 out of 10 people feel stressed about their finances. Two thirds of people say that they stress about finances more than they did 12 months ago, and 4 out of 10 claim that their finances cause anxiety. People also say that they’ve gained weight, suffered from depression, experienced a lowered sex drive, couldn’t concentrate, had problems sleeping, and lost their sense of humor because of the state of their finances.

If you find yourself among this majority of the population, take a deep breath. While there’s no immediate solution to financial stress, there are some things you can do to lower your personal stress levels. This will help you assess the problem more accurately, address it more directly, and overcome it more quickly. It will also help keep your medical expenses down, as stress is one of the main causes of some major health problems.

Breathe

Though it may feel entirely counterproductive, particularly if there are things you want to do to investigate or help your situation, find a dim, quiet place where you can have ten minutes to yourself. Get into a comfortable position — sitting or lying are the most common. Let your thoughts wander for a few minutes until they start to settle down.

Close your eyes, and focus on your breath. Don’t change anything about the way you breathe. Feel your chest rise and fall, rise and fall, rise and fall. Let your thoughts bounce away as they come.

When your 10 minutes are up, give yourself a little while to re-acclimate. Open your eyes slowly, taking in the room and the light. When you’re ready, go back to your day. Hopefully, you’ll find what many before you have found: that focusing on your breath refreshes you and rejeuvenates your mind.

Plan

It’s easy to feel overwhelmed by financial difficulties. The problems seem to loom out of control, so large that they will never go away. To lower your stress levels, you’ll want to get them back in control.

If you’re under a lot of stress, you’ll probably want to get some help with this. While good financial help will probably cost you something and spending more may feel like the last thing you want to do, consider it an investment in your health and your future.

Get some help in getting a realistic view of your debt, your income to expense ratio, and what you need to do to get things under control. Negotiate interest rates, consolidate debt if you need to, and see if your professional help can get some of your debt forgiven. Do whatever you need to in order to come up with a plan that will make things better.

Wait

Giving yourself and your situation some time is probably the hardest thing you can do in a tough financial place. It feels like your stress will continue to grow, maybe exponentially, as time passes.

However, it takes time for financial situations to get better. While you don’t want to sit back and do nothing, getting a plan in place and then giving it some time let you address the problem without losing yourself (and your mind!) in it. Since you can’t fix the problem by letting your thoughts fixate on it and constantly churning it over in your mind, give it some space.

If these solutions don’t lower your anxiety, talk to a doctor. Talk therapy or medication may be necessary to lower your stress levels to a place where you can not only deal with them, but with your overall financial situation.

Written by Sarah Winfrey and published on Wise Bread. Read more Personal Development articles from Wise Bread.

5 Steps Toward Financial Independence

Sarah Winfrey — Thu, 01 Jul 2010 12:00:05 +0000

Whether you’re a brand new grad or regrouping after a layoff or other financial difficulties, you may find that it’s more difficult than you’d imagined to wean yourself from any monetary help you’ve been getting. Though most of the process is straightforward, it’s always good to remember what it takes to achieve financial independence.

1. Get a Job

While finding a job in your niche or industry is great, any job is better than none at all. With job markets still sluggish, getting your foot in the door anywhere will help you towards your financial goals. Once you’re in, it doesn’t mean you have to stay. Getting a job that will hold you over, though, may mean the difference between making it on your own and moving back in with the folds.

2. Know Your Expenses

It’s easy to get overwhelmed with the different types of expenses you have, particularly if you aren’t used to paying them yourself. While writing a check here and there will get the bills paid, you’re more likely to achieve financial independence if you’re intimately familiar with your expenses.

Knowing approximately how much you pay each month in certain categories will also help you find any problems. If your electric bill suddenly skyrockets, you’ll know you need to investigate to find the source of the extra charges.

3. Commit to Saving

Being financially independent doesn’t only mean paying your own way now, but making preparations to do so in the future. Plan ahead as soon as you have some extra money, and it will go far towards ensuring your financial independence even if something bad happens, like you lose your job or face a large, unexpected bill.

Put your savings away after your regular expenses are paid and before you buy anything else. This will help your savings grow and make sure that you stay committed to it in the long term.

4. Prioritize Essentials

Make sure you know how much money you’ll need each month, and categorize your expenses. Determine which ones are necessary, which are high priority, and which ones you can eliminate if you need to. This will help you know what to pay first, as well as how much money you need to make to achieve your goals.

Prioritizing your expenses also gives you a good idea of how much you need to make each month. If your expenses are high, consider lowering them by finding roommates or changing your lifestyle for a few months, until you can get more income.

5. Give Yourself a Deadline

Decide when it’s realistic for you to achieve your financial goals and make that your deadline. Once you have that in mind, you’ll know how long you have to find a job, find a place to live, and figure out your personal budget.

Deadlines provide fantastic motivation. With one in place, you’ll be more likely to follow through on your intentions and to do so in good time. Of course, your deadline isn’t absolute. If something falls through or your situation changes, you can always move it back. But don’t move it unnecessarily, because then it isn’t a deadline at all.

Written by Sarah Winfrey and published on Wise Bread. Read more Personal Finance articles from Wise Bread.